If you live in Ontario and own a car, you must have at least the minimum amount of auto insurance to protect yourself in case of a mishap. Driving without valid insurance in Ontario may lead to a suspension of your driver’s licence for a year and a fine of up to $50,000.
The Financial Services Commission of Ontario (FSCO) oversees the Ontario insurance industry. When choosing auto insurance quotes, be sure to buy a policy that suits your specifications while ensuring it complies with the minimum car insurance requirements. You also have the option to purchase additional coverage to safeguard yourself in the event of specific accidents, such as damage caused by theft and vandalism.
Read on to learn about the types of coverage that are legally required and why you may want to purchase additional coverage. This will help you find the best auto insurance quote and ensure you get the most suitable policy.
Auto Insurance Coverage in Ontario
No matter which car you drive, your gender, your age, or accident history, you are required to have a specific amount of four types of coverage on your insurance policy:
|Coverage Option||What It Covers|
|Third-Party Liability Coverage||By law, you must have Third-Party Liability coverage. This auto insurance policy protects you if someone gets injured or their property is damaged. It can help you pay for claims and settle lawsuits.|
|Statutory Accident Benefits Coverage||This provides benefits if you get injured in an accident, no matter who is at fault. It covers supplementary medical, rehabilitation, caregiver, and attendant care costs. It also includes non-earner and income replacement benefits.|
|Uninsured Automobile Insurance||This policy protects you in case of an accident with an uninsured motorist or a hit-and-run driver and covers damage to your vehicle.|
|Direct Compensation - Property Damage (DC-PD) Insurance||Also called direct compensation, it allows you to claim losses and collect the amount directly from your insurer even if someone else causes the accident. It covers damage to your vehicle and its contents even if another person was at fault for the accident.|
How Much Should You Pay for Your Deductible?
The deductible is the consumer’s share of the claim amount and is the sum you pay first before the insurance company settles the difference. It is beneficial to know how much you should pay for your deductible. When figuring out the insurance premium and deductible amount, be sure to look at your options. You can also get multiple auto insurance quotes online. Additionally, you can work with a qualified broker to get the required assistance. Ideally, a lower premium should cover a large share of the claims cost out-of-pocket, and your deductible should be an amount you are comfortable spending if needed.
It is beneficial to do regular check-ups at least once a year to ensure nothing has changed. You should also update it every time you have a significant life change to ensure the policy offers adequate coverage. This includes a new job where you use your car for work or a change of address. This is because insurance rates differ by region and living in some areas may offer cheaper rates.
Coverage Beyond the Minimum Requirements
It is essential to comply with the minimum car insurance requirements in Ontario. However, you may need more than the standard policy to ensure you have adequate coverage in the event of an accident. Although Ontario’s no-fault car insurance rules ensure that you receive compensation for damage and injuries caused by an accident, it is only the minimum coverage. This is why it helps to get additional auto insurance.
Additional Third-Party Liability Coverage
You may increase this amount depending on your needs to safeguard yourself if the accident causes property damage or injures someone else.
Additional Statutory Accident Benefits
The Mandatory Accident Benefits policy offers replacement income only up to 70% of your gross income to a maximum of $400 a week. You may consider adding more to the minimum requirements by buying additional coverage for attendant care, medical costs, housekeeping benefits, and more.
Additional Property Damage Insurance
If you are found at fault for an accident, you will not be eligible for Direct Compensation – Property Damage coverage. This is why it is beneficial to buy additional insurance coverage to protect you if you are responsible. In addition to the standard policy, you can buy the following to ensure adequate protection:
- Specified perils coverage
- Comprehensive coverage
- Collision coverage
- All perils coverage
Get the Best Auto Insurance Quotes with Us
If you are looking for auto insurance quotes, Orr and Associates is your best bet! Our team has the skills to offer the best coverage that suits your needs. Our auto insurance brokers are available to provide support and accurate guidance to protect you and your vehicle.
We will make sure you understand the terms and conditions of your policy so you have peace of mind knowing that you are getting the right coverage at a fair price. Your broker will also ensure your policy covers your current requirements and build it to suit your changing lifestyle. We work with some of the top insurance companies to provide the best coverage for our customers.
Whether you are looking for auto insurance quotes online or want professional assistance to find the right policy for your vehicle, our specialists can help you. You may reach out to us by calling 905-833-6691 or toll-free at 1-866-521-5926. You can also fill out our online form to get an online quote. Our auto insurance brokers will be happy to help you find the right coverage.